Tax Credits for Working Families Could Be Worth Thousands of Dollars

Tax Credits Outreach Campaign Seeks to Ensure That Eligible Families Don’t Miss Out

(Washington, D.C.)  The National Women’s Law Center (NWLC) is working with organizations around the country to launch a tax credits outreach campaign today to ensure that more low- and moderate-income families are aware of and claim available federal and state income tax credits.

“Federal and state tax credits can make a real-dollar difference for families this year,” said Nancy Duff Campbell, Co-President of the National Women’s Law Center. “Our aim is to help families claim tax credits that can save them money or put money in their pockets.”

Federal and state tax credits can help offset the cost of child care and other expenses for families.  For 2012, families may be eligible for a number of federal tax credits, including:

• Earned Income Tax Credit, designed to supplement the wages of low- and moderate-income families (those who earned less than $50,270 in 2012).  This credit is worth up to $5,891 and is available as a refund for families who owe little or no income tax.  
• Child Tax Credit, designed to help families offset some of the costs of raising children. This credit is worth up to $1,000 per child. Families who owe little or no income tax can receive some or all of this credit as a refund if they earned at least $3,000 in 2012.   
• Child and Dependent Care Tax Credit, designed to offset some of the child and dependent care costs that families incur in order to work. This credit is worth up to $2,100, though the amount that can be claimed is limited by the amount a family pays in federal income taxes.

Some states offer their own credits as well: Twenty-eight states, including the District of Columbia, offer child and dependent care tax provisions, twenty-four states offer earned income tax credits and three states offer child tax credits.

“Families must file a tax return and claim these credits, or they will miss out on benefits for which they may be eligible,” Campbell said. “The goal of the tax credits outreach campaign is to make sure that families know about the credits and how they may be able to get free tax preparation assistance.”

The launch of the campaign coincides with Earned Income Tax Credit Awareness Day, an effort of the Internal Revenue Service to inform the public about the Earned Income Tax Credit and the requirements to claim the credit. As part of the NWLC campaign, state child care organizations, social service providers, and advocates will work to educate families about other valuable federal and state tax benefits as well as the availability of free tax preparation assistance in their communities.

NWLC has developed an online resource for parents and advocates with user-friendly fliers about both the federal credits and individual states’ tax provisions. Materials are available in Spanish and other languages. To learn more about these federal and state tax provisions, visit www.nwlc.org/LowerYourTaxes.

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